Scotts Miracle-Gro Acquires Assets and Brands from Turf-Seed

Scotts hopes the transaction enhances the company’s position in the global turfgrass seed industry.

May 30, 2006

The Scotts Miracle-Gro Company, the world’s leading marketer of branded products for consumer lawn and garden care, has completed the acquisition of certain brands and assets from Turf-Seed, Inc., a leading producer of quality commercial turfgrasses for more than 35 years.

“The addition of Turf-Seed’s leading brands to the ScottsMiracle-Gro family brings together two market-leading organizations focused on growth and innovation,” says Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro. “Turf-Seed has extensive expertise in the professional seed business, a strong sales force, as well as a deep commitment to turfgrass research and development.”

The Hubbard, Ore.-based Turf-Seed is a recognized pioneer and leader in the professional turfgrass seed business. The company maintains the most advanced privately owned turfgrass breeding and development facility in the U.S. This operation is known for the development of new turfgrass species, including disease resistant and genetically modified varieties.

Landscape professionals in North America, Europe and Asia have made Turf-Seed a market leader due to its high quality and variety of brands. By integrating Turf-Seed’s extensive professional seed sales and distribution network with ScottsMiracle-Gro’s existing presence and industry leading brands in the consumer seed market, ScottsMiracle-Gro will strengthen its overall global position in the seed category. The transaction also includes a partnership with Turf-Seed Europe, which distributes Turf-Seed’s grass varieties throughout the European Union and other countries in the region.

Mark Schwartz, senior vice president and general manager, grass seed, for ScottsMiracle-Gro, will lead the combined seed business. Bill Rose, Turf-Seed founder, will serve as chairman of the Scotts Grass Seed Advisory Council. The Council will help guide the grass seed business and provide strategic direction in the area of new innovations and marketing initiatives.

“This is a very exciting union of two companies that maintain the same philosophies on the importance of turfgrass and its role in the health of the environment,” Rose says. “We look forward to joining the ScottsMiracle-Gro team and advancing the business.”

Under the agreements, Scotts acquires certain assets of Turf-Seed, including its brands, turfgrass varieties and intellectual property. Scotts also enters into a multi-year collaboration, including relationships with several entities controlled by Rose. These agreements include Pure Seed Testing, Inc., Roselawn Seed, Inc. and Rose Agri-Seed, Inc. The purchase price for Turf-Seed’s assets and payments, under the six-year term agreements, is expected to total approximately $30 - 35 million.